Value added tax
Requirement
All member states of the EU must adopt the EU directives regarding VAT into their own national legislation.
M3 solution
These requirements are supported:
- VAT on goods and services
- VAT on purchase of goods and services
- VAT on supplier self-billing
- VAT on payments
- VAT on deliveries
- Required VAT information on invoices
- Triangulation
- Fiscal representation
- Through address and entry point in EU
- VAT handling for cash and payment discounts
- VAT in both local and foreign currencies
- VAT reporting
- VAT reconciliation
- VAT payments and refunds
In Croatia, the standard rate of VAT is 25%, the reduced VAT rates of 13% and 5% apply to certain supplies.
M3 supports all VAT requirements above except the section about distance sales. The distance sales are possible to manage, but not keeping track of the limit, which is a manual process.
Configuration guidelines
| Program ID | Program name | Description or comment |
|---|---|---|
| MNS100/G | Company. Connect Division | Specify the tax method per division. |
| CRS030 CRS031 |
VAT Code. Open VAT Rate. Open |
Specify the VAT rate by date, country, and area or state. |
| CRS395 | Accounting Rule. Set | Configure all VAT setups. |
| CRS610/J | Customer. Open | Specify the VAT registration number of the customer. |
| CRS620/E | Supplier. Open | Specify the VAT registration number of the supplier. |
| CRS630 | Accounting Identity. Open | Set the VAT account types as required. |
| OIS002/F | Customer. Connect Addresses | Optionally, in the VAT reg no field, specify the VAT registration number. |